Business Group Affiliation and Firm Search Behavior in India: Responsiveness and Focus of Attention

What is it about?

This article is about how firms make changes to improve their performance. We know that firms compare their performance with that of other firms and adjust when they fall below, and in this article we show that firms affiliated with business groups are especially sensitive to their performance compared with others. This means that business groups can be dynamic competitors who are quick to act when they fall behind.

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Why is it important?

This is a pioneering paper in comparing business group firms and independent firms, and it is also pioneering in looking at reactions to performance among Indian firms.